How to buy Royal Bafokeng Platinum shares on the JSE

Royal Bafokeng Platinum (RBP) is a publicly-listed company on the Johannesburg Stock Exchange (JSE). The JSE is the 16th largest stock exchange in the world and the largest of 22 stock exchanges in Africa.

 

To buy Royal Bafokeng Platinum shares, retail traders and investors are required to go through a JSE-approved broker. There’s no method to purchase shares direct from the JSE without using a broker unless the company offers a direct stock purchase plan, which is rare in South Africa. Fortunately, online brokerage fees are inexpensive; ranging from only 0.25% to 0.5% per trade.

 

In this in-depth guide you’ll learn:

  • steps for beginners to buy Royal Bafokeng Platinum shares on the JSE
  • About the JSE
  • What are share CFDs

 

And lots more…

 

Let’s dive right in…

 

Choose your quick section of our How to buy Royal Bafokeng Platinum shares below

 

How to buy Royal Bafokeng Platinum shares Revealed:

 

Royal Bafokeng Platinum at a glance

Name                    Royal Bafokeng Platinum Ltd

JSE code               RBP

Sector                   Precious Metals and Mining

Market cap         29,644,427,123

 

👉 Royal Bafokeng Platinum Ltd is a mid-tier platinum group metals (PGMs) producer that originated in 2002 from a joint venture between Anglo American Platinum and Royal Bafokeng Holdings. It was known as the Bafokeng Rasimone Platinum Mine Joint Venture (BRPM).

 

👉 BRPM produced its first platinum concentrate which it sold to Anglo American Platinum (Amplats) for beneficiation in its refineries in December 1999. In 2010, RBPlat obtained a 67% majority interest in the JV through a restructuring and took over operational control. RBPlat listed on the JSE in 2010.

 

👉 Royal Bafokeng Platinum operations are located approximately 30kms north west of the town of Rustenburg in the North West province of South Africa and immediately south of the world-famous Pilanesberg Complex. The mining operation is situated in the only major shallow platinum group metals (PGMs) reserves still available for mining in South Africa.

 

👉 The CEO of Royal Bafokeng Platinum is Steve Phiri (2020- ) and its headquarters are in Johannesburg, South Africa.

 

Can I buy Royal Bafokeng Platinum shares direct from the JSE?

👉 No, retail traders and investors cannot buy Royal Bafokeng Platinum shares direct from the JSE. A JSE-approved broker needs to purchase Royal Bafokeng Platinum shares on your behalf. Contact any mainstream bank in South Africa that offers a stock broking service or find a JSE-approved broker on the list provided below.

 

4 easy steps for beginners to buy Royal Bafokeng Platinum shares on the JSE

Step 1 : Decide if you’re a trader or an investor

👉 If you have never bought company shares before on a stock exchange, you need to decide first if you’re a trader or an investor. They are two very different approaches to profiting off the financial markets.

 

👉 Traders use short-term strategies to maximize daily, monthly or quarterly returns. They take advantage of rising and falling markets as well as enter and exit points over a shorter timeframe. Traders take smaller but more frequent profits.

 

👉 Investors use long-term strategies to get a larger return over an extended period of time. This means investors buy and hold shares, as opposed to trading them in a shorter timeframe. Most investors buy and hold shares for a long term goal such as for their retirement or to make profits from their capital.

 

What is the difference between a trader and an investor?

👉 The big difference between a trader and an investor is traders typically buy shares as CFDs (contract for differences) which means they don’t own the underlying asset. Investors take ownership of the underlying asset and the shares are held for them on an investment platform.

 

Step 2: Decide who you will use to buy or trade Royal Bafokeng Platinum shares

👉 Retail traders and investors cannot buy Royal Bafokeng Platinum shares directly from the JSE. The only way to buy Royal Bafokeng Platinum shares if you are a beginner is through a JSE-authorised broker or share CFDs via an online broker or bank using a trading platform. There is the option of investing in shares through an asset management company but that’s best left to the professionals.

 

Buying shares via a stock broker company

👉 This is something also best left to advanced traders or investors with a lot of capital. This is because stock brokers charge substantial fees and commissions per transaction. Stock brokers are an old-fashioned way to buy and sell shares on stock exchanges and they’ve mostly been replaced by online brokers with electronic trading platforms.

 

Buying shares via an online stock trading broker

👉 Online stock trading is the most popular method for beginners to buy and sell shares on the JSE. Traders and investors have access to the same global stocks as stock brokers via an automated trading platform and mobile apps, hosted by a regulated broker.

 

👉 The cost of trading through an online broker is significantly cheaper than going direct to a stock broking company. If you’re tech savvy, you have a choice of a wide range of trading apps for buying shares on the financial markets. Stock trading apps puts the stock market in the palm of your hand.

 

Pros and cons of trading shares via an online trading broker

The advantages include:

  • you can trade share CFDs on leverage
  • the only costs associated with share CFDs is the bid/ask spread
  • you can short sell share CFDs without needing to borrow the shares
  • you can develop your own trading strategy to trade independently

 

👉 The main disadvantage of trading through an online broker is the minimum trading requirement is reduced and shares are typically traded as CFDs. This means you don’t own the underlying asset. This isn’t an issue for beginner traders but it is if you’re an investor and you want to buy and hold shares for a longer period of time.

 

Step 3 : Find a JSE-approved broker

👉 Beginner traders can easily trade the world’s largest company shares on a retail broker’s trading platform or through one of the mainstream banks in South Africa. Not all global online brokers offer the JSE Top40 Index so most South African traders buy domestic JSE shares through their bank.

 

👉 Almost all major banks in South Africa offer an online trading service for retail traders and investors to buy shares. If you are a beginner trader, your local bank is your best option to buy Royal Bafokeng Platinum shares on the JSE.

 

How to get JSE Exchange Traded Contracts for Difference (CFDs)

👉 To access this product, contact one of the JSE’s Equity Derivatives members.

 

9 JSE-approved brokers to buy Royal Bafokeng Platinum shares in South Africa

Share broker Broker fee per trade Admin fee per trade Register
Absa Bank 0.40% R75 Absa stock broking  
bpbernstein 1.00% R30 bpbernstein stock broking  
Easy Equities 0.25% R80 – R100 Easy Equities stock broking
FFO Securities 1.25% R30 FFO Securities stock broking  
FNB 0.50% R87 FNB stock broking  
Momentum Securities 0.50% R45 Momentum Securities stock broking  
PSG Wealth 0.90% R55 PSG Wealth stock broking  
Sanlam iTrade 0.50% R50 Sanlam iTrade stock broking  
Standard Bank 0.40% R99 Standard Bank stock broking  

 

** Broker fees and admin fees subject to change : estimate for comparison only

 

Step 4 : Online registration and funding

Follow the multi-step process to register an online share trading account and deposit funds in the account.

  1. Sign up with your email address
  2. Enter your personal details and banking details for fund transfers
  3. Add accounts and sign mandates
  4. Read the terms and conditions
  5. Send in your identification documents required by FICA legislation
  6. Fund your account in the currency accepted by the broker
  7. Set up your trading platform and start trading

 

FICA : Documents required for individual traders

👉 A valid South African identity document

 

👉 Proof of residential address, for example, water and electricity bill (not older than three months), your bank statement (not older than three) or current lease agreement. The documents must be in the name of the account holder. If not, written confirmation from the account holder that the applicant lives at the residential address and a certified copy of the account holder’s identity document is required.

 

👉 A cancelled cheque or bank statement not older than 3 months (electronic statements are not accepted). The name of the bank account must correspond with the applicant’s details.

 

👉 Proof of income tax number; for example, copy of an official document issued by the South African Revenue Services. (An IRP5 will not be accepted).

 

Please note

Due to the SA government’s anti-money laundering legislation, JSE-approved brokers require original or originally-certified copies of the above documents.

 

About the JSE

👉 The Johannesburg Stock Exchange (JSE) is based in South Africa where it has operated as a market place for the trading of financial products for over 132 years. The JSE connects buyers and sellers in equity, derivative and debt markets.

 

👉 The JSE is the largest stock exchange in Africa and one of the top 20 exchanges in the world in terms of market capitalisation. As of August 2020, the market capitalisation of the JSE was at US$1,005 billion.

 

👉 The JSE is a member of the World Federation of Exchanges (WFE) and holds the chairmanship of the Association of Futures Markets (AFM).

 

👉 The JSE offers an electronic, efficient, secure market with excellent regulation, trading and clearing systems, settlement assurance and risk management.

 

👉 JSE Market Data provides a range of reliable and transparent market data products to market professionals and data distributors. JSE Market Data supports multiple use cases that require live data for JSE listed equities, derivatives and bonds. This data is generated across the various markets throughout the trading day.

 

👉 JSE Market Data also provides an extensive range of index, stock exchange news, historical and reference data services.

 

What are share CFDs?

👉 CFDs are Contracts for Differences. You get them for shares, commodities, forex, precious metals and energy and global stocks. Share CFDs are the most commonly-traded CFDs in the marketplace.

 

👉 The CFD prices comes from the price of the underlying stock that is the subject of the CFD. Trading share CFDs feels exactly the same as buying and holding shares as an investor but the difference is you don’t own the underlying asset. Instead, you’re speculating on the price movement of the stock.

 

👉 Share CFDs can be bought and sold easily on a broker’s trading platform. You take advantage of price movements in both rising and falling markets. Traders hope to make money by buying low and selling higher, or selling high and buying lower.

 

FOREX TRADING AFRICA DISCLAIMER

Trading share CFDs is highly speculative, involves a significant risk of loss and is not suitable for all investors.

 

Share CFDs are only suitable for traders who understand and are willing to assume the economic, legal and other risks involved; are experienced and knowledgeable about trading in derivatives and underlying asset types; and are financially able to assume losses significantly in excess of margin or deposits if trading on leverage and margin.

 

Forex Trading Africa aims to educate its readers on products and services available to access the global financial markets. Readers assume the risks of trading CFDs and trade independently of any information provided on the Forex Trading Africa website.

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